Significant parts of Caymans’ financial services industry could move elsewhere because of the directive, which seeks to tax cross-border interest payments to EU residents from 2005.
The EU offensive cannot start without Cayman participation, according to the Financial Times. However UK treasury minister Dawn Primarolo was due to say today that the UK is willing to provide certain tax concessions to the Caymans, providing the UK dependent territory gives a commitment to implement the EU directive.
The Caymans’ banking sector is the fifth largest in the world and is a leading centre for hedge funds.
Report argues that the government must change the way it makes tax and budget decisions
Committee expresses concern about costs to businesses and April 2018 implementation date
Andrew Tyrie airs views on the Finance Bill, 'Making Tax Policy Better' report, and Brexit
Top 25 firm HW Fisher & Co has acquired London firm Rhodes & Rhodes